JD Wetherspoon reports sales lifts of 6.3%

Pub group JD Wetherspoon has continued to enjoy growth, with like-for-like sales up 6.3% for the 13 weeks to 28 April 2013.

Total sales saw lifts of 9.3% for the same period, just behind total sales for the year to date (39 weeks to 28 April) which had increased by 10.1% year on year. Like-for-like sales for year to date increased by 6.7%.

However operating margin for the 13-week period was 8.5%, compared with 8.3% in the first half of the current financial year and 8.4% for the 39 weeks to 28 April 2013.

Wetherspoons has opened 16 new pubs and sold two since the start of the financial year. The company said in its trading statement that several new sites are under development and reiterated its intention to open 30 pubs in the current financial year and around 20 to 25 pubs next year.

The pub group also emphasised its position on VAT and warned that it expects costs to go up.

"As previously indicated, the biggest dangers to the pub industry are the VAT disparity between supermarkets and pubs and the continuing imposition of stealth taxes such as the late-night levy and increased fruit/slot machine taxes," Wetherspoons said in its trading update.

"However, the company welcomes the recent abolition of the duty escalator and the reduction in beer duty, and hopes that this indicates a greater appreciation from politicians of the important economic and social role played by pubs.

"Notwithstanding the recent changes, we anticipate that taxation and input costs will continue to rise."